Year-to-Date, FTSE/NAREIT All REIT Index Up 7.1%

REIT share prices came under pressure in October with concerns of rising interest rates bearing down on the market, according to analysts. However, REIT returns continued to lead the S&P 500 through the first 10 months of the year.

The total returns of the FTSE/NAREIT All REIT Index dropped 4.9 percent in October, while the S&P 500 index lost 1.8 percent.

News

REITs Continue to Beat S&P 500

REIT share prices came under pressure in October with concerns of rising interest rates bearing down on the market, according to analysts. However, REIT returns continued to lead the S&P 500 through the first 10 months of the year.

The total returns of the FTSE/NAREIT All REIT Index dropped 4.9 percent in October, while the S&P 500 index lost 1.8 percent.

News

Vornado Spinning Off Assets in Washington, D.C.

Vornado Realty Trust (NYSE: VNO) said Oct. 31 it plans on merging its Washington, D.C.-area properties with select assets of The JBG Companies, a real estate firm based in Chevy Chase, Maryland.

The new, combined company will become a publicly traded REIT known as JBG SMITH Properties. The transaction is valued at approximately $ 8.4 billion, and is expected to be completed in the second quarter of 2017.

News

Austin Ranked as Top Market for Real Estate Opportunities in 2017

Austin, Texas, now offers the most attractive real estate investment and development opportunities of any major U.S. market, according to a survey of industry authorities.

Another Texas market, Dallas/Fort Worth, took second place in the Emerging Trends in Real Estate 2017 survey from PwC and the Urban Land Institute (ULI) released Oct. 26. Portland, Oregon ranked third in the survey of more than 1,800 real estate experts.

News

Capital Markets Receptive to REITs

In the latest episode of The REIT Report: NAREIT’s Weekly Podcast, Keven Lindemann of S&P Global Market Intelligence discussed REITs’ capital raising actives in 2016.

REITs raised 11 percent more capital through the end of 2016’s third quarter than they did in the year-earlier period.

“That’s certainly an indication that the companies in the [REIT] industry have healthy access to the capital markets,” Lindemann said.

News

REIT Bull Market Still Alive, Case Says

In the latest edition of Quick Study, Brad Case, NAREIT’s senior vice president for research and industry information, rebuffed the suggestion that REITs are nearing the end of their market cycle.

“I haven’t seen anyone make an argument that is actually well reasoned and based on empirical data” indicating that the REIT bull market is drawing to a close, Case said. He pointed out that construction activity in the United States remains below average. “A real estate market typically reaches its end when construction is significantly higher than average,” he said.

Brad Case

News